REG - Logistics Dev Grp - Portfolio NAV and Distribution Update

Logistics DevelopmentAnnouncement

17/03/2025 07:00

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RNS Number : 8128A  Logistics Development Group PLC  17 March 2025

17 March 2025

 

Logistics Development Group plc

 

("LDG" or the "Company")

 

Portfolio NAV and Distribution Update

 

 

LDG today announces its quarterly portfolio data. As at 31 December 2024,
LDG's unaudited estimated net asset value ("NAV") per share was £0.223. This
reflects a moderate increase of 4.43% compared to the prior period being 30
September 2024. The NAV, in respect of private investments, has been assessed
and reported to the Board by the Company's investment manager, DBAY, who
applies the International Private Equity and Venture Capital Valuation
("IPEV") Guidelines in its valuation practices.

 

Update on the Company's Investment Portfolio

 

 Underlying investment    LDG's economic interest % of the asset  Additions/(divestments) in the three-month period to 31 December 2024  Total investment cost  Revenue                                                   Employees

 Finsbury Food Group Ltd  25.31%                                  None                                                                   £14.2m                 £452.4 m (June 2024)                                      c. 3,500

 (Private)

 SQLI SA                  10.77%                                  None                                                                   £13.3m                 €251.2m (December 2023)                                   c. 2,300

 (Private)

 Alliance Pharma plc      13.16%                                  None                                                                   £39.0m                 £180.3m (December 2024 as per unaudited trading update)   c. 290

 (Listed)

 

LDG's investments are held through Fixtaia Limited, a wholly owned subsidiary.

 

Finsbury Food Group Ltd ("Finsbury")

Business description

For the year ended 29 June 2024 (being the latest audited period), Finsbury
generated £452.4 million of revenue from its specialty bakery business,
producing and selling high-quality bread and cakes to food retailers and food
service clients across the UK and Europe. Its product portfolio consists
largely of either essential bakery products (e.g. organic & artisan bread,
buns and rolls) or highly emotional event purchases (e.g. brand-licensed
celebration cakes for parties, especially for children).

 

Its largest retail bakery clients include supermarkets (e.g. Tesco, Co-op,
Waitrose, Sainsbury's) and its largest food service clients include
restaurants and coffee shops (e.g. KFC, Costa Coffee, Bidfood, Brakes). The
company has longstanding relationships with many licensed brands,
manufacturing quality bread and cakes for some of the biggest names in the
market (e.g. Disney, Thorntons).

 

Finsbury operates in Europe via its Lightbody Europe subsidiary in France and
Ultrapharm business in Poland. The company was incorporated in 1925, is based
in Cardiff and has 3,500 employees.

 

Q4 Highlights

·      In the quarter ended 31 December 2024, Finsbury's revenue has
seen a moderate decrease compared to the prior year due to portfolio
optimization choices to improve margins.

·      Quarterly EBITDA (pre-IFRS16) came in above prior year and
in-line with budget. The key profit drivers were price recovery net of direct
cost inflation, this includes the benefit of purchasing contracts which are
deflationary in the first two quarters - as well as positive benefits from
cost savings initiatives.

·      Finsbury continues to assess value enhancing acquisition
opportunities within the sector.

 

SQLI SA ("SQLI")

Business description

SQLI is a pan-European IT services business with leading positions in the
e-commerce / omnichannel integration and digital experience space. SQLI
generated €251.2 million revenue for the year ended 31 December 2023 (being
the latest audited period). It is headquartered in Paris and its 2,300
employees are spread over 13 countries, including in an offshoring delivery
centre in Morocco, with 850 employees. SQLI's core market continues to grow
and the company is recognized for its strong technical capabilities and track
record. SQLI's client base includes multinational blue-chip corporates such
as: Nestle, Airbus, LVMH, Miele, L'Oreal, Richemont, Rolex, Carlsberg and many
others.

 

Q4 Highlights

·      In December 2024, DBAY successfully completed its tender offer to
take SQLI private. DBAY believes that this strategic de-listing will
streamline the company's operations.

·      As part of the succession planning in the business, Philippe
Donche-Gay, who was CEO until the end of 2024, has moved into a Chairman role,
while Erwan la Duff, who joined the business as COO last year has transitioned
into the CEO role. Erwan's strong background in Customer Experience positions
him well to drive the next phase of SQLI's growth.

·      The company has finalised its management accounts for the full
financial year ending 31 December 2024, showing an improvement in comparison
to financial year ending 31 December 2023.

 

Alliance Pharma plc ("Alliance")

Business description

Alliance is a global healthcare platform that markets and distributes leading
OTC consumer healthcare and prescription products. Alliance's portfolio is
focused on damaged skin and healthy ageing, with its products sold globally,
via the retail channel (Boots, Walgreens, etc.), pharmacies, and increasingly
via e-commerce. The business has over 290 employees and is headquartered in
Chippenham, Wiltshire.

 

Q4 Highlights

·      For the year ended 31 December 2024, Alliance reported revenues
of £180.3 million, per the unaudited trading update released on 31 January
2025. Profitability for 2024 is expected to be in line with 2023 (2023
adjusted EBITDA was £45.0 million). As at 30 June 2024, Alliance reported net
assets of £222.9 million.

·      On 10 January 2025, DBAY announced a recommended offer for the
entire share capital of Alliance of 62.50p per share representing a 14%
increase in value per share compared to LDG's average purchase price and a 37%
premium to the valuation as at 31 December 2024.

·      On 10 March 2025, DBAY announced an increase in its offer to
64.75p per share, representing an 18% increase in value per share compared to
LDG's average purchase price and a 42% premium to the valuation as at 31
December 2024. The offer is being conducted as a scheme of arrangement, which
is expected to become effective in the first half of 2025.

Distribution Update

Further to the Company's announcement of 24 December 2024, LDG has engaged in
a number of discussions with shareholders regarding the preferred structure of
a distribution, and the Company confirms that it is currently in the process
of preparing to make a tender offer to return up to £21 million to
shareholders at 19p per share (the "Tender Offer"), which will be subject
to, inter alia, shareholder approval. The Company expects to launch the
Tender Offer in the coming weeks and a further announcement will be made as
and when appropriate.

 

This announcement contains inside information as defined in Article 7 of the
EU Market Abuse Regulation No 596/2014, as it forms part of United Kingdom
domestic law by virtue of the European Union (Withdrawal) Act 2018, as
amended, and has been announced in accordance with the Company's obligations
under Article 17 of that Regulation.

 

For enquiries:

 

 Logistics Development Group plc     Via FTI Consulting
 FTI Consulting                      +44 (0) 20 3727 1340

 Nick Hasell

 Alex Le May

 Strand Hanson Limited               +44 (0) 20 7409 3494

 (Financial and Nominated Adviser)

 James Dance

 Richard Johnson

 Abigail Wennington

 Investec Bank plc                   +44 (0) 20 7597 5970

 (Broker)

 Gary Clarence

 Harry Hargreaves

 

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